The acquisition of a fully licensed cannabis facility will expand Chemesis’ capabilities to process over
500,000 kg of cannabis annually within the U.S.
VANCOUVER, British Columbia, March 07, 2019 (GLOBE NEWSWIRE) -- Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or “Chemesis”), announces it has entered into binding agreements
to acquire 100% of a fully-operational extraction and manufacturing facility in Cathedral City, California (“Facility”). Once
completed, this transaction (“Acquisition”) will expand the Company’s processing ability to over 500,000 kg of cannabis annually.
The new state-of-the-art facility is fully licensed, and the Acquisition is expected to double the Company’s current capacity to
process large amounts of cannabis to extract THC, CBD and other cannabinoid and terpene products.
The Facility is located within close proximity to the Company’s existing licensed extraction facility, which
commenced operations this quarter. Upon completion, the Acquisition will permit the Company to operate two fully licensed and
commercialized facilities, which is expected to streamline resources for the Company’s controlled expansion plan within the
U.S.
The Acquisition will result in the Company acquiring control over the following licenses:
- Cannabis Business Local License, #MCL-17-007-M-18
- Cannabis Business Local License, #MCL-17-007-C-18
- Type 7 Manufacturing License – Adult & Medical Cannabis Products, #CDPH-T00000362
Furthermore, the Company is exploring the possibility of processing hemp at the Facility for full spectrum plant
extracts rich in CBD and leveraging the hemp legalization provisions of the 2018 U.S. Farm Bill to capitalize on the expected
increased demand for CBD. It has been estimated that the CBD market will have a value of over $2.1 billion by
20201. Legislation is currently pending in California that would accommodate incorporating hemp-derived cannabinoids and
terpenes into the currently regulated cannabis supply chain (similar to neighboring legal cannabis states like Oregon), as well as
non-THC-infused food, beverages and cosmetics.
“The Company will, upon completion of the Acquisition, significantly increase its production and manufacturing
capabilities in the U.S.,” said CEO of Chemesis, Edgar Montero. “The addition of this new facility will allow the Company to
extract high-quality cannabinoids and terpenes for use in a wide variety of consumer products. Chemesis will then be able to
leverage its existing expertise in extraction, distribution, and sales to continue growing revenues and build long-term value. I
believe this expansion will open up considerable new revenue opportunities for the Company when we begin processing hemp,” added
Montero.
Under the terms of this acquisition, Chemesis will pay $1,000,000 USD 90 days from closing and issue 4,600,000
shares. The stock is subject to 36-month lock-up/leak-out guidelines. The Acquisition is expected to close on or about March
30, 2019.
On Behalf of The Board of Directors
Edgar Montero
CEO and Director
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, currently
operating within California, Puerto Rico, and Colombia.
Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution and
retail. Chemesis has facilities in both Puerto Rico and California, allowing for cost effective production and distribution of its
products. In addition, Chemesis leverages exclusive brands and partnerships and uses the highest quality extraction methods to
provide consumers with quality cannabis products.
Chemesis will add shareholder value by exploring opportunities in emerging markets while consistently delivering
quality product to its consumers from seed to sale.
Investor Relations:
ir@chemesis.com
1 (604) 398-3378
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Forward-Looking Information: This news release contains "forward-looking
information" within the meaning of applicable securities laws, including in relation to statements regarding the Acquisition, the
anticipated benefits of the Acquisition, the expected size of the CBD market, the Company’s ability to increase production of
various cannabidiol products, and generally regarding the business, products and future of the Company’s business, its
product offerings and plans for sales and marketing, including upon completion of the Acquisition. Although the Company believes
that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations
will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking
statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially
from those contemplated by these statements depending on, among other things, the risks that the Acquisition will not be completed
as proposed or at all, that the anticipated benefits of the Acquisition will not materialize, that the CDB market will not expand
as anticipated, that the Company will not be able to expand production of CDB products at the rate anticipated upon closing of the
Acquisition (or at all), and generally that the Company's products and plan will vary from those stated in this news release and
the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims
any obligation and does not intend to update any forward-looking statements or forward-looking information in this news release.
Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no
assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The
statements in this news release are made as of the date of this release.
The CSE has not reviewed, approved or disapproved the content of this press release
1 Hemp Business Journal
